Nearby livestock futures are mixed midday Tuesday with light to moderate buyer support stepping into front-month futures. The overall lack of trade volume in the complex continues to bring increased weakness to deferred contracts. This pressure is expected to carry through the end of the session Tuesday. Corn prices are higher in light trade. May corn futures are 3/4 cent higher Tuesday. Stock markets are higher in light trade. The Dow Jones is 147 points higher while Nasdaq is up 23 points.
LIVE CATTLE:
Live cattle futures have been contained to a narrow trading range in nearby contracts. Prices are hovering from 30 cents lower to 22 cents higher as the buyer support is seen in front-month April contracts. The aggressive premium in April contracts to other summer contracts continues to widen, with April futures trading at a $13 per cwt premium over the August contract. Concern as to how the recent pressure in the market will continue to draw prices lower over the near future is causing some additional uneasiness through all trade, limiting the ability and desire for buyers to move back into the complex. Cash cattle interest is developing in all areas with bids seen at $125 to $126 live basis and $204 dressed basis. Asking prices are seen at $128 to $129 live and $208 and higher dressed. Given the gap between bids and asking prices and lack of movement in futures trade, it is likely that cash trade will be delayed until Wednesday or later. Boxed Beef cut-outs at midday are lower, $0.49 lower (select) and down $0.03 per cwt (choice) with light movement of 66 total loads reported (42 loads of choice cuts, 15 loads of select cuts, no loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Mixed trade is holding midday Tuesday as buyers attempting to slowly but firmly step into the complex. The aggressive turn lower Monday has continued to add market weakness to the complex, although traders seem to be focusing on the inability to push nearby contracts lower during morning trade. Further long-term pressure is seen, as deferred contracts are holding 30 to 80 cent losses. This lack of direction in the complex continues to bring some uncertainty if prices will be able to rebound through the next couple of weeks.
LEAN HOGS:
Mixed trade is seen at midday following limited trade activity during the entire Tuesday session. April futures are posting light gains with prices 17 cents per cwt higher, while the rest of the complex is holding steady to moderate losses due to recent market pressure still having a firm hold on the entire complex. The inability to bring active buyer support back to the market following Monday's triple-digit losses is creating some underlying concern that follow-through pressure is likely over the next few days. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.38 at $56.03 per cwt with the range from $51.00 to $57.00 on 5,358 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 204 loads selling with carcass values gaining $0.97 per cwt. Lean hog index for 3/15 is at $65.52, down 0.41 with a projected two-day index of $64.97, down 0.55.
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